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Income vs. Sales Taxes: Who Benefits From Missouri's Amendment 5
Supporters say the measure would replace income-tax revenue with broader sales taxes, while critics warn it would shift more burden to lower-income households.
On Aug. 4, Missouri voters will decide on Amendment 5, a proposal to phase out state income tax, which currently provides 61% of the state's general revenue, and replace it with expanded sales taxes.
Republican state representative John Martin, who supports the measure, calls income taxes "the worst way to tax people" and believes the tax shift will benefit his septic tank business employees.
Amy Blouin, president and CEO of The Missouri Budget Project nonprofit, argues the amendment is "a tax shift from very wealthy folks to everybody else," warning that taxing groceries and medications disproportionately burdens low-income households.
Amendment 5 grants the General Assembly five years to implement new sales taxes on "any goods and services" without specifying exemptions, leaving lawmakers broad authority over future tax scope.
If passed, Missourians may not experience the full financial effects of this constitutional overhaul for several years, as critics fear the broad legislative authority could create significant budget instability.